OSPL - Good Morning S'pore - Central Dealing Desk

Stock Name: OCBC Bk
Company Name: OVERSEA-CHINESE BANKING CORP

Research House: OSK

Price Call: HOLD

Target Price: 9.60

Stock Name: ST Engg
Company Name: SINGAPORE TECH ENGINEERING LTD

Research House: UOB KayHian

Price Call: HOLD

Target Price: 4.12

Market Compass

19 February 2013~ Good Morning Singapore!

Singapore Idea Snippets:

19 February 2013~ Good Morning Singapore! Central Execution Team - Trading For A Living This product is made available by your Central Execution Team, for you as TRs of OCBC Securities to help you with your business and therefore it is confidential and only for internal circulation. It is not intended for onward circulation to non-OSPL TRs, clients or any other third party in this or any other version. Neither is this intended to be relied upon as a sole basis for any recommendation. TRs must also consider their clients' investment objectives, financial position and needs when intending to make or making any recommendation. For the front desk, by the front desk. All feedback to make this a better product is welcome. Global Flash: While You Were Sleeping Source: Marketwatch Quote for the day : To be a good investment banker you have to have a good sense of the absurd - PETER J. SOLOMON Singapore: The Day Ahead SINGAPORE DAYBOOK: Charoen ends offer with 90.3% of F&N. He may take F&N private to gain operational flexibility: analyst THAI tycoon Charoen Sirivadhanabhakdi ended his bid for Fraser and Neave (F&N) with enough shares to force a delisting of the conglomerate. Mr Charoen's $9.55-per-share pre-dividend offer, made through private vehicle TCC Assets, closed at 5.30pm yesterday with acceptances worth 42.1 per cent of F&N's shares MARKET SCOOP Ezion secures charter contract of US$79.9m Indofoodbuys 15% stake in China Minzhong Food Lian Beng clinches S$117m condo contract Soup Restaurant doubles full-year net profit Tiger Airways flew 42% more passengers in Jan DBS VICKERS Securities says... ST ENGINEERING | BUY | TP: S$4.40 FY12 net profit of S$576m (+9% y-o-y) in line; final dividend of 13.8Scts (FY12: 12.5Scts) Upside to end-FY12 orderbook of S$12.1bn from recent Singapore navy contract MRO revenues recovering; potential for upside surprise from pick up in US operations Valuations have not peaked; maintain BUY with higher TP of S$4.40 OSK DMG Securities says... OCBC | NEUTRAL | TP: S$9.60 OCBC reported 4Q12 net profit of SGD 663m, up 12% y-o-y. However, this is 8% lower versus 3Q12's core SGD 724m - there were 3Q12 gains from sale of stakes in F&N & APB Whilst we are positive on management guidance of high single-digit 2013 loan growth, further NIM compression could hurt earnings We raised FY13F net profit by 5% to SGD 2.67b as we raised insurance income expectations and lowered provision assumptions Consequently, we raised our target price to SGD9.60, which is pegged to 1.35x 2013 book UOB KAY HIAN says... ST ENGINEERING | HOLD | TP: S$4.12 Flat 4Q12 but still an admirable 9.2% full-year growth Strong operating cash flow supportive of dividends S$6b in orders were secured in 2012 but STE could have already secured S$2b ytd All segments showed revenue and PBT growth but provisions a cause for concern ST Marine expanding into ship repair at its US Yard Guidance for higher revenue and PBT growth for 2013